Question

Let p denote the current market price for widgets and let x denote a quantity of widgets. The price per widget and the daily supply of widgets are related by the following Supply Equation: p = 0.16x + 16. The price per widget and the daily demand for widgets are related by the following Demand Equation: p = –0.09x + 29. Find the equilibrium price for widgets in the market. Round your answer to two decimal places.

Answer 1

`x = 52.00`

Explanation:

Given

`Demand: p = 0.16x + 16`

`Supply: p -0.09x + 29`

Required

Determine the equilibrium price

This is determined when Demand = Supply

So:

`0.16x + 16 = -0.09x + 29`

Collect Like Terms

`0.16x + 0.09x = 29 - 16`

`0.25x = 13`

Solve for x

`x = 13/0.25`

`x = 52.00`

Hence; The equilibrium price is when x = 52.00